Ahead of the Bell: Analysts raise estimates on Yum 1Q earns

But most said they didn't expect shares of the Louisville, Ky., company to outperform the broader market.

Cowen analyst Paul Westra raised his 2008 profit outlook to $1.87 per share from $1.83 in a note to investors. But he maintained his "Neutral" rating and said shares were "fairly valued" after an analysis of the company's earnings, which were boosted largely by higher sales overseas.

Analysts polled by Thomson Financial expect 2008 earnings of $1.86 per share.

Lehman Brothers analyst Jeffrey Bernstein also raised his outlook but was similarly cautious on the company, noting that the its U.S. business has struggled and the difficulties are likely to persist.

Bernstein lifted his 2008 outlook 2 cents to $1.88 per share.

Separately, Goldman Sachs analyst Steven T. Kron predicted that investors would wait for more stability in Yum's domestic market before driving its price higher. Kron rates Yum "Neutral."

On Tuesday, shares of Yum fell 58 cents to close at $38.49.